An annuity cannot be rolled over - it can only be exchanged with a section 1035 exchange which is what the code "6" indicates. That would be a non-taxable exchange.
The D7 indicates a normal distribution from non-qualified annuity that is taxable and not eligible to be rolled into a tax-deferred retirement account. Any money placed into a tax-deferred retirement account, such as a IRA, that exceeds the yearly contribution limits of $5,500 ($6,500 if over age 50) but not more then your earned income would be an excess contribution subject to a 6% penalty every year until it is removed. If you used the money to purchase another annuity then it is still taxable if the money was received by you.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
